BarroMetrics Views: S&P 2013-04-16
As a mark of respect for the Boston Marathon victims, I have postponed the planned blog till tomorrow and will keep this entry short.
Below I reproduce the post I sent to my Market Profile group:
“In case you did not catch it: there was a terrorist bombing at the Boston Marathon. This could upset the markets especially if the there are follow-up attacks.
Normally, the news would send Gold up and the 30-year Bonds futures down. But the relationships with the S&P are proving stronger. For this reason, provided there are no more attacks, we should see another attempt at new highs before my favoured stock market scenario occurs i.e. an upthrust on the 12-M. if this reasoning is correct for a S&P high, then the month of May looks like the earliest date for the Upthrust.
If there are more attacks, then we’ll have to wait and see on what develops in the markets”.
I’d add that after such a large drop in the currencies, gold and S&P, we should see a relief rally today, followed by more falls into the end of the week.